The credit card and personal loan will be the first set of products to be introduced by Unity Bank on its own on the retail side which were not inherited from Centrum’s lending businesses.
Its MSME, microfinance and supply chain portfolios were transferred from Centrum Capital. Its digital business loans — from Rs 25000 to Rs 30 lakh — is a new product.The bank is planning co-branded credit cards with three different partners. The first one with BharatPe may be in the market this month or early December. Once all the three cards are in the market, the next in line would be app-based personal loans.
“Credit cards will take us six months, Then the personal loan products will probably come in soon after,” Bindra said. “Then we will look at something else also on the secured side. With the new regulation on retail loans, there will be some bias on the secured side,” he added.”We don’t have a big legacy book. It’s not a big challenge for Unity. But it will put a little deterrent to market players because 25% higher risk weightage always takes another rethink and relook at the businesses,” he said.The bank’s net advances stood at Rs 5,947 crore at the end of September.
In parallel, Unity is focusing on geographical expansion. The 140-odd branches it has are mostly in Maharashtra.
“We will be launching new products gradually. Every two quarters, we will have new products on the asset side,” Bindra said, indicating that the bank would explore the less crowded personal loans such as travel loans, education loans and marriage financing.
With sufficient capital with an adequacy ratio at 37%, the bank is open to explore inorganic growth opportunities, Bindra added.
Unity is promoted by Centrum Financial Services with 51% holding while Resilient Innovations (BrataPe) came as a joint investor with balance holding.